**📢 Fed Adds $13.5 Billion in Liquidity During Powell Remarks**
During yesterday’s speech, the Federal Reserve executed a **$13.5 billion** addition to its balance sheet, specifically via **repurchase agreement (repo) operations**.
**Context & Clarification:**
- This was a **short-term liquidity operation**, not a formal launch of Quantitative Easing (QE).
- Repo operations are used to manage daily funding conditions and stabilize money markets, especially around period-ends or during volatility.
- It reflects **operational support**, not a shift in long-term monetary policy.
**Why This Matters:**
- It shows the Fed is **actively providing liquidity** when needed to ensure smooth market functioning.
- While not QE, sustained or expanded liquidity injections can support risk assets over time by improving funding conditions.
- It’s a reminder that the Fed’s tools are still active, even amid a higher-rate environment.
**Bottom Line:**
Calling this “QE” or “the money printer” is premature.
However, it confirms the Fed remains attentive to liquidity stress and is willing to act — a supportive backdrop for markets in the near term.
*Stay informed, not reactionary.
Understand the mechanics behind the headline.*
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